Tag Archives: CNBC

Most Idiotic Comment Ever? “Sell Gold Because Inflation Will Spike”

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , ,

Stanley Druckenmiller said:  “I sold all my gold (sic) on the night of the election” because he sees inflation spiking and that will force money(sic) out of gold…hmmm….sell gold because you see inflation coming?  That has to be the most idiotic investment rationale I’ve ever come across.  Even “buy stocks because they keep going higher” is less dumb than that.

You’ll note the “sic” I added after Drunkenmiller’s comment about “gold.”  “Sic” is used after a quoted word (from someone else) that seems odd or out of place.   I inserted “sic” after Drunkenmiller’s use of “gold” because he never owned gold.  He bought GLD, which is a paper derivative of gold.  The only way you own gold is if you buy physical gold and keep it outside the system. GLD is a fraud, just like every other fiat paper “asset.”

I also inserted “sic” after his use of the word “money” with respect to “money flowing out of gold” (because he thinks inflation will spike up).  Gold is money.  It’s the second oldest form of transaction currency – silver being the oldest.

Finally, the idea that gold should be sold ahead of an expectation of a spike in inflation is…well, for lack of a better term, retarded (apologies to safe-space and socially correct people).   Gold is the ultimate inflation hedge.

I sincerely do not know what would motivate Druckenmiller to make those remarks about gold – maybe he was patronizing what remains of CNBC’s imbecilic audience.   I don’t feel any need to directly address each component Drunkenmiller’s assertions about gold – and about his expectations about feeling good about the prospects for the economy.  The audiences of blogs like this one get it.

The current trading action in gold is being fueled by the paper market manipulation. If you review overnight charts for the last 3 months, you’ll see that on average and in general gold moves higher during the eastern hemisphere physical gold trading hours and gets bombed once the London and NY paper gold markets open after the Asian markets close.

It’s as simple as that.  The paper gold market, like Drunkenmiller’s comments and investment rationale,  are emblematic of the fraudulent, debt-riddled Ponzi nature of the U.S. and western hemisphere economies.

While the mantle of “power” in the U.S. was handed from Uncle Tom to Andrew Dice Clay, the real financial, economic and political power is being shifted from the western hemisphere to the eastern hemisphere.   The massive flow of physical gold from west to east is the root of this tectonic geopolitical and economic movement.

Fox News Goes Full Retard On Gold

Financial Markets, Gold, Market Manipulation, Precious Metals, , ,

We’re very bullish on gold, which is the anti–paper money, of course, and is underowned by investors around the world. – Paul Singer, Elliot Management Corp

I keep Fox Business channel on because it has the best tv “ticker scroll” for monitoring basic market activities.  Also, some of the women on the show are easy on the eyes.  Liz Claman is not one of those.

I came in from getting lunch and saw this tag-line on Claman’s afternoon show:  “Gold Losing Glitter.”   I turned up the volume to hear her explaining to the idiots who might actually listen to the garbage broadcast on the show that gold was getting hit today because investors no longer felt a need to use gold as a hedge against the BREXIT vote now that the polls show that BREXIT is currently out of favor with the chippies in England.

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Considering that gold is up about 20% since mid-December, vs. 1.9% for the S&P 500, it’s safe to assume the reasons that gold is being accumulated stretch a lot further and deeper than Claman’s idiotic explanation.

In fact, Prime Minister Cameron announced a referendum date for a vote on the issue of whether England shall remain in the EU, or not, on February 22 this year. Only 5% of gold’s 20% price appreciation since it bottomed in December has occurred since that date.

I dare say it’s a bit pre-mature to announce that gold is  losing its glitter, especially in connection with the British EU referendum.  The truth is that gold is being accumulated by smart money as a hedge against the idiocy of fiat currency-based monetary systems controlled by corrupt Government’s and Central Banks.   It’s as simple as this:

Paper money eventually returns to its intrinsic value:   zero.  – Voltaire

Jim Cramer Needs To Be Shut Down And Investigated For Illegal Stock Promotion

Financial Markets, Market Manipulation, , , ,

“No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”  –  Jim Cramer on CNBC’s “Mad Money” on March 11, 2008.

Three days later, on March 14, Bear Stearns stock plunged 92% after it was taken “under” by JP Morgan.

Today Cramer has made the claim on CNBC that “a lot of the bear markets have ended since February 10.”  According to Cramer, apparel, restaurants, iron ore and machinery groups are now in bull markets.  “C’mon in retail  stock trading minnows, the water is nice and warm.”

This assertion is just ludicrous.  For starters, we know from hard industry data released a little over a week ago – LINK – that the service sector – i.e. restaurants and retail-oriented businesses – are now shedding employees.  If a new bull market in consumption were born, service businesses that rely on middle class disposable income expenditures would be hiring, not firing.

Clearly Cramer completely neglects the fiduciary duty to conduct appropriate due diligence before issuing investment advice.   Because if he actually rolled up his sleave and did some work, he would have found the middle class is sinking in a sea of debt.  Sorry Jim, imminent personal bankruptcy is not conducive to disposable income-based consumption.

Currently a proposed rule issued by the Department of Labor would raise the bar on the investment advisory industry’s standards of fiduciary duty. “Fiduciary duty” is a legal duty to act solely in another parties’ interests.  Naturally Congress, funded by CNBC and Suze Orman, Inc are working overtime to oppose this rule.

Using the Bear Stearns case as an example, Cramer was advising his viewers to hold their Bear Stearns stock.  But was he acting in the viewers’ interests?   More likely, Cramer’s hedge fund cronies were busy unloading their positions in Bear Stearns as quickly as possible before that Titanic hit the iceberg.

I did an analysis of Bear Stearns in January 2008 and concluded that Bear was technically insolvent.  I shorted the stock in the low $80’s and managed to cover in the $30’s.  Cramer is a complete idiot if he truly thought Bear Stearns was a viable going concern.  In the absence of a willingness to believe that Cramer is a moron given his educational background,  the obvious conclusion is that Cramer is exceedingly corrupt.

What will it take for the Justice Department to investigate Cramer and all of his off-CNBC dealings?  My colleagues and I have known for well over a decade that Cramer is little more than a front for the hedge fund community.  Cramer is the Wall Street version of Hillary Clinton.  He’s gotten away with committing egregious crimes for so long that he likely  is unable to differentiate between legal and illegal.  Rule of Law, what’s that?   Cramer should not be on CNBC issuing pump and dump recommendations, many of which end up badly impaling retail stock investors.  Instead, Cramer should be busy defending himself from a bona fide SEC/Dept of Justice inquiry into his operations.

Cramer also pumped up the infamous “FANGS”  today.  He singled out AMZN just because Piper Jaffray and Wells Fargo both said AMZN was “doing much better than people think?” Based on what, Jim?   “Fiduciary duty” is not defined as parroting comments issued by retail brokerage firms who’s business is predicated on selling overvalued stocks to retail pigeons.

AMZN stock has been up as much as $9 today because of Cramer’s pump and dump call plus the fact that AMZN debuted its online streaming fashion show to promote its new clothing line.  Hey there’s an original idea, use the broadcast media to stage a mock fashion show in order to sell clothing.  Why didn’t QVC and Home Shopping Network think of that?

If AMZN’s clothing line business is like nearly every other business line of AMZN’s, it will sell it’s clothing for less than the cost of producing and delivering the product to the end-user.  QVC trades at a 13 p/e.  If AMZN does not make money on its clothing business, at what multiple of zero should AMZN’s clothing business be worth?  Currently AMZN’s $9 Cramer spike has melted into a loss of 23 cents.  Did you get some of your buddies out on that, Jim?

For original analysis and long term and short term short-sell trading ideas, check out the Short Seller’s Journal.  Last week several subscribers made between 50-200% on a “quick hit” short sell trade idea on Big Five (BGFV) that I emailed out them on Monday mid-day. (click on image to subscribe)Untitled

 

The Financial Markets Are One Big Cartoon Network

Financial Markets, Gold, Housing Market, Market Manipulation, Precious Metals, U.S. Economy, , , , , ,

It seems to never end.  The markets do the opposite of what would be expected based on common sense and on undeniable evidence about the fundamentals.   Just this morning, for instance, the S&P 500 pops up overnight and then promptly goes red after the NYSE opens. Then one of the Fed sock-puppets makes a comment about oil bottoming and the S&P 500 takes off like Roman candle.  Overnight gold was also up about $4.  A report hit the tape that some of the ECB members wanted more money printing.  Money printing is a fundamental event that should send gold inexorably higher.  Instead, gold was slammed $10 as soon as the news item hit the tape.

This drool that is served up from the policy makers and political leaders in the U.S. is nothing short of a laughable insult to our collective intelligence.  But, then again, it would seem that this country has slid down that slippery slope into idiocy.   I received this email from a colleague who is an investment advisor.  He’s one of the few that understand what is happening in this country.  Clearly his clients have been mesmerized by the clown show:

I can’t tell you how many times I have been in meeting with investors and explained common sense truths, only to have their eyes completely glass over.  Usually, they immediately proceed to ask me about Amazon, Netflix, Apple and Google.  People really are that clueless.  One of my clients, that owns PHYS, told me he really didn’t want any more than 10% gold and wanted me to look at cloud computing stocks.

I had another client leave me recently because we had an allocation to gold, cash and stocks.  They went to Fidelity and purchased 4 growth funds and long term bonds.  They told me that Fidelity was a bigger company and they were bullish stocks.  I laughed myself to sleep that night and watched their account fall 8% the first week of 2016.

It is totally insane how clueless your average person with investable assets is.  I can’t even imagine how insanely ignorant the people that are that live paycheck to paycheck.  It’s truly scary because those people really and truly believe it’s the rich that keep them poor and they believe the government is their only ally.

When the day finally comes that gold is recognized as real money your average person is going to be totally shocked.  I have a feeling they will blame everyone and everything other than themselves and the good old government.

The hardest part about being a retail advisor is when you first understand that people, even smart people, can’t accept that their beliefs are misguided.  People will take it hard when it happens.

I leave you with a final quote I heard years ago:  “If what you knew to be true turned out not to be true; when would you like to know about it.”  Unfortunately, for most people, they only want to know when it is too late!

Jim Quinn, of The Burning Platform, with whom I often share email chuckles over what’s unfolding in this country, has written a concise commentary titled, “Maybe Valuations Do Matter,”  which encapsulates the essence of the madness into which our system has lapsed:

I wonder if the brainless twits and shills on CNBC will be telling their audience that the S&P 500 is now lower than it was in May 2014. That’s right. Anyone in the stock market over the last 20 months hasn’t gained a penny. The S&P 500 is now down 11% from its all-time high in May 2015. Only 40% or 50% more to go to reach fair value.

He concludes that that the stock market needs to drop at least 50% to be fairly valued.  I have not had a chance to probe him on this, but I suspect his non-public number is closer to my number:   80%.   We were on that path in 2009 until the Fed and Obama bailed out the banks in order to enable them to continue sucking wealth out of the system.

The latest contrarian editorial “vogue” is to refer to the recent .25% nudge in the Fed funds rate as “a policy mistake.”  Sorry, that’s not even remotely close to the truth.  The policy error committed in this country was preventing the markets in 2008/2009 from doing what they will eventually do anyway.   And EVERYONE will end up paying for that mistake.

Out, out, brief candle!
Life’s but a walking shadow, a poor player
That struts and frets his hour upon the stage
And then is heard no more: it is a tale
Told by an idiot, full of sound and fury,
Signifying nothing. (Macbeth, Act 5 scene 5)

Conspiracy Truth

Financial Markets, Gold, Housing Market, Market Manipulation, Precious Metals, U.S. Economy, , , ,

What the Fed did, and I was part of it, was front-loaded an enormous market rally in order to create a wealth effect.  –  Richard Fischer, former Dallas Fed President on CNBC (via Zerohedge)

It is absolutely mind-blowing that this statement by a former Fed bank President did not get widespread coverage by the entire financial and general news media.  This is a senior Fed official admitting that the Federal Reserve rigged the stock market.   Stop and think about for a moment.   Blogs like this one have been asserting for well over a decade that the Federal Reserve rigs the stock market.   Here is a former insider – a high-level former insider – stating in a public forum – that the Fed rigged the stock market to go higher in order to “create a wealth effect.”

And boy did it work.  The wealth effect was created by a transferring a few trillion from the middle class venues of stock market investment – pension funds, IRAs, etc – to Wall Street and the corporate insiders who have been dumping their shares into this market.  There’s plenty of hidden avenues of transfer. Consider that your 401k or your public pension fund is probably about 20% allocated into private equity funds. Those funds have fueled a tech bubble of unprecedented size in Silicon Valley.  Hundreds of billions of wealth have been “extracted” as the p/e firms invest at absurdly high capitalization rates and the insiders partially cash out.

The transfer is not quite complete.  When the stock market crashes again, all of the middle class avenues of stock market exposure will collapse in value but the elitists will be left sitting on piles of wealth that they removed from the markets.  This is wealth that came from your retirement fund or from your overpaying for a home.

How is it at all possible that this extraordinary admission from Richard Fisher is not on the front page of the Wall St Journal, New York Times, Washington Post, Barron’s, etc?  THIS is an example of the factors causing the collapse of the United States.

Everything thing that was a factor in causing what happened in 2008 is even more of factor now. It’s just a matter of time before it all blows up.  – from my podcast interview with Phillip Kennedy of Kennedy Financial

Our discussion includes the movie, “The Big Short,” the housing market, Fed policy and the precious metals market.  I explain why I believe that the precious metals sector represents an opportunity of a generation.

I think what the Fed wished it had done is start raising rates earlier so that they would have room to lower rates now and try to stimulate things. But I think the ability to stimulate the system with monetary policy – I think that ship has sailed…

Shadow of Truth Ep 14 – Bill Murphy: The Man Banned From CNBC For Telling The Truth

Financial Markets, Gold, Market Manipulation, Precious Metals, , ,

Anyone who denies that gold and silver are manipulated either has not spent time examining the evidence or is financially incentivized to refute all allegations.   In other words, they are either ignorant or willfully corrupt. This includes the entire universe of politically corrupt western Central Bankers and professionally criminal Wall Street bankers. But first and foremost it includes all three branches of Government.

The manipulation is seeded by the U.S. Treausry’s Exchange Stabilization Fund, which was first established in 1934 as a currency “stabiliaztion” mechanism. Well guess what? Back then gold and silver were used as a currency. The Commodities and Futures Trading Commission was set up to enforce the rules in place to prevent futures manipulation.  For some reason, the CFTC has discovered and prosecuted manipulation in just about every  futures market except gold and silver, despite an inexhaustible effort by many organizations and individuals,  which have flooded the CFTC with compelling evidence.

One such organization is GATA – the Gold Anti-Trust Action committee, founded by Bill Murphy and Chris Powell. They founded GATA in 1998 in order to expose the massive gold manipulation scheme by the western Central Banks. The goal was to not just to bring about regulatory change but to compel enforcement of the laws which already exist. If you have not done so, spend some time perusing the GATA archives (GATA.org Articles), which contain countless irrefutable studies proving  that the gold and silver markets are rigged to an astonishing degree of repetition and blatancy.

Unfortunately, as we have all discovered, any effort in Congress to audit the Fed, all attempts make Freedom Of Information Act inquiries about the Fed’s gold trading activities and all initiatives to hold the Fed accountable for the gold it reports to be in its vaults have been denied by the impentrable wall of corruption and fraud that separates Washington DC and Wall Street from truth and justice.

Rory and I hosted GATA co-founder Bill Murphy for a very lively and information discussion about GATA and its efforts to shine the light of truth of the world’s oldest currency and only true form of honest money.

Podcast Download (right-click on link and hit “save as”)

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Anti-Gold Propaganda In The West At An All-Time High

Financial Markets, Gold, Market Manipulation, Precious Metals, U.S. Economy, , ,

I’ve been involved in every aspect of the precious metals market since late 2001 and I’ve never heard of Rick Spooner or CMC markets…Rick Spooner?  Why not just drag out Pee Wee Herman and have him read off a teleprompter?

CNBC, Ansuya Arjani and anti-gold terrorism

With gold under the most intense market manipulation effort in history from the western Central Banks, leave it to none other than CNBC to amplify the media’s anti-gold propaganda effort.   Little bit of history.  CNBC has been anti-gold since the nascence of gold’s bull market.  GATA’s Bill “Midas” Murphy was interviewed on CNBC in February 1999, right around the time the Bank of England was starting to drop 400 tonnes – half of England’s gold – onto the market.   Bill told the truth about the gold manipulation and was banned from appearing on CNBC ever since.

This morning I wake up and see this headline from CNBC post on Yahoo.com:  “Stay Clear, Gold Sell-Off Could Get Uglier” (LINK).   CNBC dragged out none other than Rick Spooner of CMC Markets?  Who?  I’ve been involved in every aspect of the precious metals market since late 2001 and I’ve never heard of Rick Spooner or CMC markets.  I looked up CMC Markets and I find that it’s a retail online forex bucket shop business (Goldman owns 10%) based in London.    Rick Spooner?  Why not just drag out Pee Wee Herman and have him read off a teleprompter?

The anti-gold propaganda is starting to boil over because everyone knows that the fiat currency Ponzi scheme global financial system is collapsing.   It becomes more obvious to more people everyday.  For CNBC to drag out someone like this reflects a new level of desperation by the western financial elitists in their effort to disarm gold’s alarm signal.

On the other hand, China, India and Russia have all collectively stepped up their efforts at accumulating all the physical gold being used to by the western bullion banks to hold down the price of gold.  According to the Shanghai Gold Exchange website, delivery volume of gold last week totaled a monster 261.234 tonnes.   This means withdrawals will likely amplify as well.

 Instead of seeing Friday’s obvious attack on gold – and today’s anti-gold propaganda attack – as a sign of a market that’s in trouble, perhaps these blatant attacks on gold should be seen as the west’s last gasp of breath in its effort to keep a dying system from collapsing.

Can We Believe Anything Coming From The U.S. Government?

Financial Markets, Gold, Market Manipulation, U.S. Economy, , ,

It’s gotten to the point at which, if Obama got on t.v. and stated that the sun came up in the east today, I would have to search the internet to make sure there was not any evidence that it didn’t.   But of course, the majority of the U.S. population is now nothing more than what I’ll call “television zombies.”  The Government is well aware that if they plant anything on CNN and Fox News or in the NY Times and Washington Post that most Americans will believe it.

On Monday this week, reports started surfacing that Russia was selling gold.  First Soc Gen and then JP Morgan.  The reports cited “sources in Russia.”   When I read these reports I almost fell of my chair with laughter.  This is one of those examples in which American t.v. zombies will believe anything.  This is a “tell ’em 2 plus 2 equals 1 and I bet they swallow it hook, line and sinker” report.

To begin with, Russia has no need to sell gold.  In fact, Russia added 150 tonnes of gold to its Central Bank holdings in August, September and October.   It didn’t make any sense that Russia would then turn around and sell gold.  Why?   Russia runs a current account surplus – LINK.  It has cash on its balance sheet.  Something the U.S. can only dream about, as the U.S. Government has to issue debt every hour to fund itself.  The last time the U.S. sniffed a positive balance of payments was in the 1980’s.

Second, Russia just got through paying down a big chunk of sovereign debt during Q3.   It’s current Debt/GDP ratio is 10%.  The U.S. Treasury Debt to GDP is over 100%.  Note:  this does not include direct obligations like the debt of Fannie Mae and Freddie Mac now guaranteed by the U.S. Government.  The last time the U.S. had Debt/GDP of 10?   I don’t know, the Fed records only go back 1966 and the lowest that ratio got between then and now was about 30% – LINK.

The story planted in the media by the U.S. elitists just did not add up.  And then Russia released its November Central Bank balance sheet which revealed that it had bought another 600,000 ozs/17 tonnes of gold in November (source:  goldchartsrus.com):

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Well, so much for the lie that Russia was selling gold to raise capital.  In fact, if Russia had sourced the gold it bought in November from the Comex – assuming the Comex reports, which are sourced from banks which lie, are valid – the purchase would have wiped out 78% of the gold which is listed as being available for delivery.  Russia did dump $10 billion in Treasuries in October.  Yes, Russia is selling U.S. Government bonds, not gold.

As the U.S. Government and Wall Street become increasingly desperate to hold onto their power – power which enables them to suck all the wealth out of our system – their lies and propaganda become increasingly blatant and absurd.   Of course, they can get away with it because they know that American zombies will believe it as long as  CNN, Fox, Bloomberg or CNBC reported it.

New Research Report Is Up

Gold, Precious Metals, , , , ,

This one is my best ideas right now and it’s probably the best risk/return junior mining stock play I’ve seen in over 13 years of following the precious metals and mining stock sector.

It’s certainly, by far, the most mis-priced junior mining stock in the sector.  This is also my most comprehensive and thorough report, including a glossary of mining terms and a two-page technical analysis that Nick/Denali Guide prepared specifically for this report.

You can access this report here:   Research Reports

FYI:  CNBC just posted its lowest viewer ratings since Q2 1997.  Cramer’s show is absolutely cratering:   CNBC/Cramer Crashing  It’s outright embarrassing to have worse ratings than Charles Payne on Fox News, as he’s has to be one of the dumbest “market experts” I’ve ever seen.

I remember thinking back in the early 2000’s, when CNBC was at its zenith, that we would see the Fed’s money printing-fueled stock bubble persist until CNBC ratings tanked and that the start of a serious bear market would begin when CNBC’s viewership headed to zero.  Looks like we’re almost there, baby!

Anyone see the 2yr Treasury auction today?  It was a disaster .  The low demand/poor auction results is being credited with triggering the big drop in stocks today.

Seriously, it’s time to get out of mainstream stocks, unload your bond funds and move your money into the safety of physical gold and silver.  You leverage your gold/silver holdings by buying good quality junior mining shares, like the one featured in my latest report.